Careful How You Tread Now
My my… it’s getting harder and harder to run a business these days without breaking some rule, offending somebody, being misleading or being fined or punished for getting great results for your seller. So, because of this, we are going to look at the various ways you can market the property without getting into trouble.
All research shows that buyers like price guidance in real estate. I have always been a fan of the “Offers Over” a particular figure strategy because it gives buyers a price guide and they don’t have to get frustrated and waste their time contacting agents for estimates. When using the “Offers Over” this price sets a baseline where sellers will start looking at potential offers.
When real estate agents appraise a property, they look at several different factors to advise the seller on a potential sale price such as the number of properties on the market, presentation, and buyers in the marketplace. Currently, we are in a property market where demand is by far outstripping supply and buyers are aware of this – at the end of the day, a buyer will determine what they perceive the value of the property is in their own eyes, for their own reasons, and this is something that can create a wide and diverse range of offers from potential buyers. The Department of Mines, Industry, Regulation and Safety (DMIRS for short) has indicated that this method could now be misleading. However, in the present market where there is an intense air of competition the agent cannot necessarily predict what a buyer will offer, and how keenly competitive they might be, therefore, is not necessarily in control of the result that might be attained.
So, now what alternatives do we have?
Well, you could take the home to “Auction” like they do in the Eastern states (mainly because there is a cooling-off period over there if you sell by private treaty) but not very popular over here, and this method clearly shrinks your buying market down to cash buyers only, which clearly limits your opportunities, as a seller.
Then we have “Online Auctions” – and “Openn Negotiation” while more expensive due to auction and app fees may not get the seller the best price that is out there which is basically what we are engaged to do. And then of course there are the good old “Offers” or “Contact Agent” which, as frustrating as it is for buyers, is perhaps the safest way to market properties from the Real Estate Agents’ perspective if they don’t want to get investigated for misleading conduct.
It’s a little silly really in my view because all that happens is the buyers ask the agent what the seller is looking for, and then the agent either gives a figure (so may as well have said it in the first place) or doesn’t give any indication which appears somewhat clandestine, which doesn’t exactly create an atmosphere of trust.
So, where do we go from here?
Well, from the Real Estate Agents viewpoint we need to take care we don’t overstep any Government rules and yet try and keep everybody happy, so if you are a buyer and we are unable to indicate a price range for you, then I suggest you do your research to the point that you feel comfortable with any offer you are likely to make on a property because you have made yourself familiar with the recent
It’s unfortunate, in my view, that we cannot give more guidance in this area, but in this ever-increasing litigious society and the self-appointed powers of Government, it would appear we have little choice.
So, my advice to buyers is to arm yourself with knowledge, be very clear about your financial abilities and limits, don’t try and outsmart competitive buyers, but just discern what value the property has for you personally, and then put your best foot forward without fear of loss.
Sometimes missing out on a property will be, in hindsight, the best thing that could’ve happened – you just won’t know it at the time, and you will be successful when the right one does come along.
So…Have faith and carry on!
Source: “Careful How You Tread Now”, The Post – 27 November 2021.